International Students: Getting An Itin Number Simplified

International students can obtain an Individual Taxpayer Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN) and need to meet their tax filing obligations. An ITIN is a unique tax-processing number issued by the US tax collection agency, the Internal Revenue Service (IRS), to non-residents who need to file a tax return due to taxable income but are ineligible for an SSN. SSNs are only issued to non-residents who are employed, whereas an ITIN is required for international students who are receiving non-employment-based income, such as scholarships, and do not have an SSN.

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International students with non-wage income

As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes. If you are working, you can apply for a US Social Security Number (SSN). Most foreign students and scholars in F-1, J-1, M-1, and Q-1 non-immigrant status are eligible to be employed in the United States and can, therefore, apply for an SSN.

However, if you are not working but still have non-wage income to report on your taxes, you will need to apply for an Individual Taxpayer Identification Number (ITIN). Common examples of taxable non-wage income for international students include scholarships, grants, or fellowships received, as well as passive investing income such as interest income, dividend payments, and capital gains on US stocks. If a scholarship, grant, or fellowship is applied directly against tuition or is received from a foreign entity, there is no need to apply for an ITIN to report taxes on it.

To apply for an ITIN, an F or M student must submit a Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return. You can apply for an ITIN at any time of the year when you have a tax filing requirement. As an international student, you can coordinate with your international student office to collect, verify, and submit your application once you have arrived on campus. Once submitted, it will take the IRS approximately 7-11 weeks to issue your ITIN. You can check the status of your ITIN number application by calling the IRS toll-free at 1-800-829-1040.

Once you have received your ITIN, you may be able to use it to access US financial products in addition to filing your taxes. With many US banks, it is possible to apply for a bank account and credit card using your ITIN in place of an SSN.

ITIN application process

International students can apply for an Individual Taxpayer Identification Number (ITIN) if they are ineligible to obtain a Social Security Number (SSN) but need to report income to the Internal Revenue Service (IRS). An ITIN is a unique tax-processing number issued by the IRS to individuals who pay taxes but are not eligible for an SSN.

To apply for an ITIN, an international student must submit a Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return. The form can be completed electronically, but it must be signed by hand in the correct location, as electronic signatures are not accepted. Along with the form, students must provide proof of identity and foreign status, such as a current passport with an F-1 or J-1 visa foil inside. Canadians do not require a visa foil. If the visa foil is not in the current passport, the student must bring the passport with the foil.

Students can also seek assistance from their university's International Students and Scholars Office (ISSO). The ISSO can help with the ITIN application process, but students must first make an appointment with an ISSO Student Advisor and bring all the required documents for verification. The ISSO will then provide a cover letter stating the need for an ITIN.

Additionally, students can seek help from tax professionals or Certified Acceptance Agents (CAAs) at organizations like H&R Block, which has offices nationwide to guide individuals through the ITIN application process. Using a CAA can make the process easier as they can verify the supporting documents on-site, and copies of these documents, along with the ITIN application, can be submitted to the IRS. The processing time for an ITIN application is approximately 7-10 weeks, and individuals can check the status of their application by calling the IRS toll-free at 1-800-829-1040.

Using ITIN to access US financial products

International students in the United States who do not have a Social Security Number (SSN) will need an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income. An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) for those who pay taxes but are not eligible for an SSN.

Once you have received your ITIN, you may be able to use it to access US financial products in addition to filing your taxes. Many US banks and credit unions of all sizes will accept an ITIN to open personal checking accounts, savings accounts, and even apply for credit cards.

• Amplify Credit Union: Amplify accepts ITINs and has worked to remove obstacles to financial success for its members. As a credit union, Amplify does not charge any fees, including maintenance fees, overdraft fees, out-of-network ATM fees, or wire transfer fees.
• Bank of America: Large, mainstream banks like Bank of America generally require about two pieces of documentation and proof of a valid US street address.
• Chase
• Wells Fargo
• Self-Help Federal Credit Union
• Latino Credit Union
• Revolut: Get an account number and debit card to hold and spend US dollars, and deposit your salary.
• Wise: Open a Wise Multi-Currency Account to access a US checking account, nine other foreign bank account details, and the ability to hold 50+ foreign currencies.

In some states, you can also open a college savings plan with tax benefits, known as a 529 plan, provided you have an ITIN.

Eligibility for an SSN

International students with F-1, J-1, M-1, and Q-1 non-immigrant status are eligible to be employed in the United States and can, therefore, apply for a Social Security Number (SSN). To be eligible for an SSN, students must be employed in the United States. This includes on-campus jobs and off-campus work.

To apply for an SSN, students must first verify that they are in Active status in the Student and Exchange Visitor Information System (SEVIS). Their SEVIS record must be in Active status for at least two days before applying for an SSN. It is also recommended that students wait ten days after arriving in the United States before applying, to allow time for their arrival information to update across all government systems.

The Social Security Administration (SSA) uses the Systematic Alien Verification for Entitlements (SAVE) program to verify a student's non-immigrant status and determine their eligibility for an SSN. Students can use the SAVE Case Check to follow the progress of their verification online.

Students granted employment authorization by the US Citizenship and Immigration Services (USCIS) need an SSN. Those who are ineligible for an SSN but receive non-wage income in the US (such as scholarships, grants, interest on stocks, or gambling/lottery winnings) must apply for an Individual Taxpayer Identification Number (ITIN).

Taxable non-wage income

International students in the United States who are not eligible for a Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN) to report any non-wage income when filing taxes. ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) to individuals who pay taxes but are ineligible for an SSN.

The Internal Revenue Service (IRS) defines taxable non-wage income as the income you receive in the form of money, property, or services. This includes employee wages and fringe benefits, income from bartering, partnerships, S corporations, and royalties. It is important to note that any amount included in your income is generally taxable unless specifically exempted by law.

For example, if you receive scholarships, grants, or fellowships, these are typically considered taxable income. Other forms of non-wage income that are generally taxable include royalties, which you would report in Part I of Schedule E (Form 1040 or Form 1040-SR), Supplemental Income and Loss. However, if you are in business as a self-employed writer, inventor, artist, or hold an operating oil, gas, or mineral interest, you would report this income on Schedule C.

Additionally, the sale or exchange of virtual currencies, their use in paying for goods or services, or holding them as an investment can have tax consequences, resulting in potential tax liability. Bartering, which is the exchange of goods or services without the use of money, is also generally taxable. However, it is important to note that informal exchanges of similar services on a non-commercial basis, such as a babysitting cooperative, are not considered bartering for tax purposes.

To apply for an ITIN, international students can submit IRS Form W-7, "Application for IRS Individual Taxpayer Identification Number," along with their tax returns and documents verifying their identity and foreign status. This can be done with the help of Acceptance Agents, who are authorized by the IRS to assist in completing ITIN applications. These agents can be found at colleges, financial institutions, accounting firms, and some Low-Income Taxpayer Clinics (LITCs).

Frequently asked questions